Refer to Figure 14.2 for the Following Questions

question 135

Multiple Choice

Refer to Figure 14.2 for the following questions.
Figure 14.2

-Refer to Figure 14.2. Currency speculators believe that the value of the euro will decrease relative to the dollar. Assuming ceteris paribus, how would this be represented?

• A)Supply would decrease, demand would decrease and the economy moves from B to C to D.
• B)Supply would increase, demand would decrease and the economy moves from C to B to A.
• C)Supply would decrease, demand would increase and the economy moves from A to D to C.
• D)Supply would increase, demand would increase and the economy moves from D to A to B.

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Definitions:

Emotional Appeals

A persuasive technique that targets the emotions of the audience to create a connection or elicit a response.

Authority Figure

An individual who holds power or control in a particular context, often able to influence others' actions or beliefs.

Obedience

The act of following the directives or commands of authorities or social norms, often studied in the context of how people can be influenced or controlled by others.

Milgram's Study

An influential experiment conducted by Stanley Milgram in the 1960s to investigate obedience to authority, demonstrating that people are willing to administer what they believe are painful electric shocks to another person when instructed by an authority figure.